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Questions and Answers
What is the purpose of discounting of bills?
What is the purpose of discounting of bills?
- To sell outstanding invoices at a discounted price to a third-party financier (correct)
- To handle loan and credit applications from customers
- To increase the interest rates on loans
- To provide financial planning services to clients
Which department focuses on meeting the needs of individuals for bank accounts and credit cards?
Which department focuses on meeting the needs of individuals for bank accounts and credit cards?
- The Investment and Financial Planning Department
- The Credit and Loan Department
- The Personal Banking Services Department (correct)
- The Corporate Banking Department
What does the Investment and Financial Planning Department help clients achieve?
What does the Investment and Financial Planning Department help clients achieve?
- Collection of outstanding invoices
- Approval of loan and credit applications
- Their financial goals through investment and financial planning services (correct)
- Management of bank account financing
Match the following types of deposits with their descriptions:
Match the following types of deposits with their descriptions:
Match the following types of loans and advances with their descriptions:
Match the following types of loans and advances with their descriptions:
Match the following functions of a bank with their descriptions:
Match the following functions of a bank with their descriptions:
Match the following loan types with their descriptions:
Match the following loan types with their descriptions:
Match the following banking departments with their descriptions:
Match the following banking departments with their descriptions:
Match the following financial services with their descriptions:
Match the following financial services with their descriptions:
Match the following financial transactions with their descriptions:
Match the following financial transactions with their descriptions:
Match the type of deposit with its description:
Match the type of deposit with its description:
Match the type of loan with its characteristics:
Match the type of loan with its characteristics:
Match the loan requirement with its description:
Match the loan requirement with its description:
Study Notes
Bank Deposits and Loans Summary
- The bank accepts three types of deposits: fixed deposits, current deposits, and savings deposits.
- Fixed Deposit Accounts require money to be deposited for a fixed period and cannot be withdrawn early. The longer the period, the higher the interest rate.
- Current Deposit Accounts are for traders and businessmen who make frequent payments and do not earn interest. They have to pay incidental charges to the bank.
- Savings Deposit Accounts aim to encourage small savings and have restrictions on withdrawals. They offer a low-interest rate compared to fixed deposits.
- Cash Credit Accounts allow the bank to make payments exceeding the available balance, resulting in a negative bank balance.
- Overdraft occurs when a purchase or check exceeds the available balance, resulting in a negative account balance.
- An ordinary or clean loan is considered low risk for the lender and typically requires a good credit history, stable income, and collateral.
- Cash credit and overdraft are types of loans and advances provided by the bank.
- Cash credit allows payments exceeding the available balance, while overdraft results in a negative balance in the account.
- An ordinary or clean loan is low-risk for the lender and requires a good credit history, stable income, and collateral.
- These loans typically require the borrower to have a history of repaying debts on time, a stable and reliable income, and pledged collateral.
- In the event of default, the lender can seize the collateral and sell it to recoup their losses.
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Description
Discover the key functions of commercial banks with this quiz. From accepting various types of deposits to providing loans and advances, test your knowledge of banking operations and terminology.